XRP (Ripple), SuperTrend Buy Signal ON...Whales Start Betting

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XRP has flashed a SuperTrend buy signal for the first time since mid-June, putting the $1.10 to $1.13 range back to the test.

According to crypto media outlet 24/7 Wall St. on July 3 (local time), XRP rebounded to $1.11 after hovering around $1.05 for about a week and a half. This rebound was accompanied by a SuperTrend buy signal on the 4-hour chart. As this indicator has shown a bullish reversal for the first time since mid-June, the market is once again focusing on whether a short-term bottom has been confirmed.

Analyst Ali Martinez stated that a SuperTrend buy signal appeared on XRP's 4-hour chart on July 2. Following the previous buy signal, XRP rose 14.2% before the signal reversed. The same indicator previously sent bearish signals ahead of sharp declines of 19.5% and 16.6%, drawing market attention as a short-term trend indicator. XRP closed at $1.087 on July 2, forming a closing price above $1.07 for the first time since June 24.

The supply and demand environment has also improved somewhat. According to SoSoValue data, the XRP spot ETF turned to a net inflow of $6.55 million on July 2, after ending the quarter with minor outflows for two consecutive trading days. Bitcoin (BTC) recovering to $61,000, breaking out of its lowest level in about two years, also bolstered market sentiment. On Ripple's side, validators entering a vote for a new institutional lending protocol on the XRP Ledger has emerged as a separate point of interest.

However, it is difficult to conclude a bottom solely based on a buy signal. In April, a SuperTrend buy signal also appeared around $1.43 for XRP, but XRP subsequently fell more than 25% from that range by late June. EGRAG CRYPTO explained that XRP's monthly Relative Strength Index (RSI) has fallen below 40, entering its most oversold territory in history. Santiment's 30-day Market Value to Realized Value (MVRV) recorded approximately -45%, and daily active addresses increased from about 23,000 to nearly 40,000 in two weeks. Nearly 5,000 new wallets were added to the XRP Ledger in one day, marking the largest increase in over three months.

The price baseline is narrowed down to $1.06 and the $1.10 to $1.13 range. According to Glassnode data, approximately 830 million XRP were last traded around $1.06. 24/7 Wall St. explained that this range is the bottom line that this rebound must hold, and if the daily closing price falls below $1.06, the next major support level is around $0.80. Conversely, if the $1.10 to $1.13 range is maintained, a scenario of a 14% rise similar to the previous buy signal opens up, and XRP could climb to around $1.24.

[Key Article Summary]

-XRP rebounded to $1.11, flashing a 4-hour chart SuperTrend buy signal for the first time since mid-June.

-The previous SuperTrend buy signal led to a 14.2% increase, but the April signal failed, leading to a decline of over 25% thereafter.

-24/7 Wall St. analyzed that if XRP maintains the $1.10 to $1.13 range, there is a possibility of a rebound to $1.24, and if it loses $1.06, the rebound scenario weakens.

*Disclaimer: This article is for investment reference only and we are not responsible for any investment losses based on it. This content should be interpreted for informational purposes only.*